The Business Case for Why and How Mobile Phones Can – and Should – Move Towards Circularity

A report published by GSMA focuses on how "to develop a compelling business case for why and how mobile phones can – and should – move towards circularity." The report explores the following research questions:

1. Current status: How linear or circular are mobile phones, and how have relevant trends evolved over the past few years? What are the most common business models for phones used by mobile operators?
2. Adapting to emerging trends: How are consumer preferences and regulations accelerating the transition towards circularity? How are manufacturers, operators and other stakeholders responding?
3. Scaling circular business models: Which circular business models are most promising for mobile operators, and how can they be scaled up? What are the roles of operators, manufacturers, refurbishers and other stakeholders in overcoming barriers?

Below are the report's key findings:

• Consumer trends, regulatory requirements and growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry.
• Rapid technological developments and growing demand for mobile connectivity contribute to significant environmental and social impacts from the production, use and disposal of mobile phones.
• Circularity is a critical lever in reducing the environmental impacts of mobile phones since most of them come from materials sourcing and manufacturing.
• Consumer and regulatory trends are driving the shift toward a more circular economy, albeit with significant variation between countries and regions.
• Circular business models – such as repair services, refurbished devices and trade-ins – offer a range of commercial benefits for the industry, including cost savings, new revenue opportunities, greater customer loyalty, improved brand reputation and supply chain resilience.
• Circularity also yields significant environmental and social benefits for companies and customers, including achieving climate targets, reducing e-waste, promoting digital inclusion and supporting local economies.
• Many mobile operators are already developing circular business models, but face barriers in scaling up.
• Collaboration is crucial to accelerate the transition to a circular economy for mobile phones.
• Ultimately, circular business models need to be financially sustainable, advance environmental goals and meet customer needs. 

Regarding the need for greater circularity, the report lists three ways circularity of mobile phones can be increased:

1. Reducing the environmental impacts of manufacturing by using circular resources, such as recycled and recyclable materials and renewable energy.
2. Increasing the potential and actual lifespan of phones by repairing and refurbishing existing phones, designing phones to be more durable and repairable, and providing adequate software and security support to match the potential physical lifespan of devices.
3. Ensuring no device ends up as waste by recovering and recycling phones that have reached their actual end-of-life.

I concur with the report's assertion that "Although mobile phones contain many valuable minerals that can be recycled and reused, many phones ultimately end up in landfills or incinerated.  

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.